The United States’ market-government hybrid mortgage system is unique in the world. No other nation has such heavy government intervention in housing finance. This hybrid system nurtured the excessively risky loans, financed with too much leverage, that fueled the U.S. housing bubble of the last decade and resulted in the systemic collapse of the global financial system. The responsibility for the massive failures of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, at the center of American housing finance and the private securitization system that supports housing finance, falls directly on regulators and indirectly on their political overseers.

More on Housing Markets

Commentary

BNA INSIGHTS: Can the Private Market Return to Home Lending?

By Ike Brannon and Mark A. Calabria. Bloomberg BNA. July 14, 2016.

One Year After: Freddie Gray and ‘Structural Statism’

By Steve H. Hanke and Stephen J.K. Walters. Investor’s Business Daily. April 22, 2016.

Coming Full Circle on Mortgage Finance

By Mark A. Calabria. Urban Institute. April 21, 2016.

Cato Studies

U.S. Immigration Levels, Urban Housing Values, and Their Implications for Capital Share

By Ryan Murphy and Alex Nowrasteh. Working Paper No. 37. August 9, 2016.

How Are Small Banks Faring under Dodd-Frank?

By Hester Peirce, Ian Robinson, and Thomas Stratmann. Research Briefs in Economic Policy No. 20. February 18, 2015.

The Conservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established Insolvency Principles

By Michael Krimminger and Mark A. Calabria. Working Paper No. 26. February 9, 2015.

Articles

The Productivity Gap: Monetary Policy, the Subprime Boom, and the Post-2001 Productivity Surge

George Selgin, David Beckworth, and Berrak Bahadir. Journal of Policy Modeling. Vol. 37. No. 2. March 2015.

Public Filings

On “Regulatory Burdens to Obtaining Mortgage Credit”

By Mark A. Calabria. Testimony. April 16, 2015.

Texas Dep’t of Housing & Community Affairs v. The Inclusive Communities Project, Inc.

By Meriem Hubbard, Ralph Kasarda, Joshua P. Thompson, & Ilya Shapiro. Legal Briefs. November 24, 2014.

Texas Dep’t of Housing & Community Affairs v. The Inclusive Communities Project, Inc.

By Meriem Hubbard, Ralph Kasarda, Joshua P. Thompson, & Ilya Shapiro. Legal Briefs. June 16, 2014.

Cato Reviews & Journals

Perez v. Mortgage Bankers: Heralding the Demise of Auer Deference?

Adam J. White. Supreme Court Review. 2014-2015.

Reforming Housing Assistance

Edgar O. Olsen. Regulation. Summer 2015.

Fannie, Freddie, and Future Bailouts

Policy Report. March/April 2015.

Events

34th Annual Monetary Conference

Featuring James A. Dorn, James Grant, John A. Allison, Gerald P. O'Driscoll Jr., Kevin Dowd, Thomas Hoenig, J. Christopher Giancarlo, Athanasios Orphanides, H. Robert Heller, Daniel L. Thornton, Thomas J. Sargent, Tyler Goodspeed, George Selgin, Jerry L. Jordan, Steve H. Hanke, Walker F. Todd, & Phil Gramm. November 17, 2016. Conference.

Zoning Rules! The Economics of Land Use Regulation

Featuring Mark A. Calabria. October 15, 2015. Book Forum.

Did Affordable Housing Policy Cause the Financial Crisis and Can It Happen Again?

Featuring Mark A. Calabria. April 7, 2015. Policy Forum.